Southwest Airlines (Mexico) Market Value
| LUV Stock | MXN 605.00 9.78 1.59% |
| Symbol | Southwest |
Southwest Airlines 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Southwest Airlines' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Southwest Airlines.
| 12/16/2024 |
| 03/16/2025 |
If you would invest 0.00 in Southwest Airlines on December 16, 2024 and sell it all today you would earn a total of 0.00 from holding Southwest Airlines or generate 0.0% return on investment in Southwest Airlines over 90 days. Southwest Airlines is related to or competes with CVS Health, Delta Air, Monster Beverage, Micron Technology, Grupo Sports, and Air Transport. Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the... More
Southwest Airlines Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Southwest Airlines' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Southwest Airlines upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.06) | |||
| Maximum Drawdown | 13.52 | |||
| Value At Risk | (4.10) | |||
| Potential Upside | 2.23 |
Southwest Airlines Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Southwest Airlines' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Southwest Airlines' standard deviation. In reality, there are many statistical measures that can use Southwest Airlines historical prices to predict the future Southwest Airlines' volatility.| Risk Adjusted Performance | (0.08) | |||
| Jensen Alpha | (0.20) | |||
| Total Risk Alpha | 0.0347 | |||
| Treynor Ratio | (0.99) |
Southwest Airlines Backtested Returns
Southwest Airlines owns Efficiency Ratio (i.e., Sharpe Ratio) of -0.0717, which indicates the firm had a -0.0717 % return per unit of risk over the last 3 months. Southwest Airlines exposes twenty-one different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please validate Southwest Airlines' Risk Adjusted Performance of (0.08), variance of 4.34, and Coefficient Of Variation of (963.65) to confirm the risk estimate we provide. The entity has a beta of 0.23, which indicates not very significant fluctuations relative to the market. As returns on the market increase, Southwest Airlines' returns are expected to increase less than the market. However, during the bear market, the loss of holding Southwest Airlines is expected to be smaller as well. At this point, Southwest Airlines has a negative expected return of -0.15%. Please make sure to validate Southwest Airlines' skewness, as well as the relationship between the rate of daily change and price action indicator , to decide if Southwest Airlines performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.07 |
Very weak reverse predictability
Southwest Airlines has very weak reverse predictability. Overlapping area represents the amount of predictability between Southwest Airlines time series from 16th of December 2024 to 30th of January 2025 and 30th of January 2025 to 16th of March 2025. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Southwest Airlines price movement. The serial correlation of -0.07 indicates that barely 7.0% of current Southwest Airlines price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.07 | |
| Spearman Rank Test | -0.01 | |
| Residual Average | 0.0 | |
| Price Variance | 915.03 |
Southwest Airlines lagged returns against current returns
Autocorrelation, which is Southwest Airlines stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Southwest Airlines' stock expected returns. We can calculate the autocorrelation of Southwest Airlines returns to help us make a trade decision. For example, suppose you find that Southwest Airlines has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Southwest Airlines regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Southwest Airlines stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Southwest Airlines stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Southwest Airlines stock over time.
Current vs Lagged Prices |
| Timeline |
Southwest Airlines Lagged Returns
When evaluating Southwest Airlines' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Southwest Airlines stock have on its future price. Southwest Airlines autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Southwest Airlines autocorrelation shows the relationship between Southwest Airlines stock current value and its past values and can show if there is a momentum factor associated with investing in Southwest Airlines.
Regressed Prices |
| Timeline |
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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.Additional Tools for Southwest Stock Analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.